Transcript DFPCL Corporate Presentation Q2 FY15

Corporate Presentation Q2 FY 15
Table of Contents
 About Us
 Product Information
 Plant Capacities & Technology
 Company Strengths
 People at the helm
 Company financials
ABOUT US
4
DFPCL
 Over three decades of technology depth, financial prudence
and human motivation
 Listing: The Stock Exchange, Mumbai (BSE), and the National
Stock Exchange (NSE)
 Multi-product portfolio spanning a variety of sectors – built in
resilience against economic downturns
 Plants at Taloja, Western Maharashtra, India
 100% Subsidiary – Smartchem Technologies at Srikakulam,
Andhra Pradesh
 Ranked Fourth among chemicals manufacturers in India by
Dun & Bradstreet
 The only IPA and TAN manufacturer in India & the largest Nitric
Acid and AN producer in SEA
 Assimilated world’s finest technologies available for products
 Certifications—ISO 9001:2000, ISO 14001:2004, OHSAS
18001:2007
PRODUCT INFORMATION
6
Product Information
 Industrial Chemicals
 Iso Propyl Alcohol, Methanol, Ammonium Nitrate (AN), Dilute Nitric Acid (DNA), Strong Nitric Acid
(SNA), Concentrated Nitric Acid (CNA), Propane, Carbon-di-oxide (CO2), Hydrogen (H2)
 Agri-business (Fertilisers)
 Fertilisers : Nitro Phosphate (NP) 24:24:0, Bentonite Sulphur, bio-fertilisers, water soluble fertilisers, soil
nutrients and select mixtures
 DFPCL’s Saarrthie initiative linking nutrient management to product output management
 Mining Services and Consultation
 The only manufacturer of Technical Ammonium Nitrate – a key ingredient to the emergent mining and
explosives industry
 Holistic mining services provider of end to end solution in geology, mine consulting and contract mining
 Value Added Real Estate (VARE)
 Ishanya – India’s first true Lifestyle Centre. Located in Pune, Western Maharashtra
PLANT CAPACITIES & TECHNOLOGY
8
Plant Capacities
Installed Capacity
Unit (MTPA)
Ammonia
1,28,700
CNA
1,38,600
DNA
7,02,900
Methanol
1,00,000
Iso Propyl Alcohol
TAN (across Taloja & Srikakulam)
CO2
Nitro Phosphate
Bentonite Sulphur
70,000
4,69,000
33,000
2,29,500
25,000
Technology
Products
Technology
Ammonia
Fish International Engrs. (U.S.A.)
Methanol
Davy McKee (U.K.)
Dilute Nitric Acid (DNA)
Weatherly Inc. (U.S.A.)
Concentrated Nitric Acid (CNA)
Plinke (Germany)
Lowe Density Ammonium Nitrate (LDAN)
Stamicarbon (The Netherlands)
Nitro Phosphate (Fertilisers)
Stamicarbon (The Netherlands)
Iso Propyl Alcohol (IPA)
British Petroleum
Stamicarbon (Netherlands)
Technical Ammonium Nitrate
Grande Paroisse (France)
Norsk Hydro (Sweden)
Uhde (Germany)
COMPANY STRENGTHS
11
STRENGTHS – AGRI-BUSINESS
12
Agri-Business
DFPCL’s Business Model
Identify growth platforms at each level of the agri-value chain where value can be maximised-from farm nutrient inputs, to services and fresh produce management
 Farm nutrient inputs: Complexes, Fortified and Specialty fertilisers
 Key Task: Augment capacity, build deeper market penetration and brand strengths.
 Services: Enhance critical last-mile connectivity to farmers
 Key Task: Create effective farm advisory and nutrient input
delivery mechanism to the farmer’s doorstep, for better yields
and profitability - The Saarrthie model in operation
 Fresh produce management: Focus on select fresh fruits
and vegetables for global and Indian markets
 Key Task: Gestational business in India, therefore need to
acquire scale, market access and capability – DFV acquisition
the first step towards developing these
13
Agri-Business
DFPCL’s Strengths (Fertilser Marketing)
 Only manufacturer of 24:24:0 in India
 Amongst market leaders in India for specialty products, water
solubles, specialty fertilisers and Sulphur Bentonite
 Among the best recognised brands in the industry—Mahadhan
and Bhoodan— drawn across a wide range of fertiliser products
 Network of 4,500 dealers and sub-dealers to ensure penetration
across 7 states – Maharashtra, Karnataka, Gujarat, Madhya
Pradesh, Punjab & Haryana
 Strong farmer relationships through 12 Saarrthie centres serving
11,500 farmers
 DeepakGap Certifications for agri-produce accepted as global
standard
 ISO 17025 accredited laboratory for agri-research
14
DFPCL Network in India
Proposed
Expansion
New
Expansion
New
Expansion
Existing
New
Expansion
15
Agri-Business
DFPCL’s Strengths
 DFPCL has invested resources in India for production of major
fruits such as grapes & banana. The advantages of these two major
crops in India are:
 Large acreage under these two crops therefore good quantity of fruit
is available for marketing
 Quality and supply chain is fairly streamlined with packing facilities.
 DFPCL’s next mandate crop is Pomegranate
 Pomegranate is grown almost round the year with 90% of the area in
Maharashtra – our current location
 DFPCL’s agronomists will supervise for production and quality.
 DFPCL’s outreach to major cities for domestic sale of fruits &
vegetables
 Supply to major super markets as well as into whole sale trade
 Proximity to the Middle-East markets as well.
16
Agri-Business
NEW PROJECTS
 Recently announced two new projects in Agri-business at a total
investment of Rs. 415 crores
 Capacity augmentation project at Taloja
 Project will more than double the existing capacity at the integrated
fertiliser complex
 Will enhance capacity of NPK grades complex fertilisers from 2,29,000
MTPA to 6,00,000 MTPA
 Company will gain additional flexibility to produce all NP / NPK grades
with fortification of micro-nutrients
 Greenfield Bentonite Sulphur plant
 New BenSulf plant at Panipat in Haryana – Northern India
 Plant will produce 32,000 MTPA of BenSulf
 Both projects are expected to be completed in 30-months from
commencement
17
STRENGTHS – MINING CHEMICALS
18
Mining Chemicals
DFPCL’s Business Drivers
 Critical need for power and infrastructure drives overall
demand for coal, limestone and iron ore
 India possesses globally significant mineral resources. Mining
industry to grow at 7% p.a. for the next 7-10 years
 Demand for coal is projected to increase to 980.5 Mn. tonnes
in India’s 12th Plan, from around650 Mn. tonnes currently
 Coal sector growth therefore at 7-8% p.a. for the next 10
years. Need to enhance coal production to reduce dependence
on import
 12th Five Year Plan (2012-17) envisages nearly $1 trillion
investment in infrastructure – a key to GDP growth
19
Mining Chemicals
DFPCL’s Business Model
 TAN is a relatively specialised product with customers requiring
a high level of service from suppliers
 DFPCL’s key competitive advantages are based on scale, market
penetration and technical services - Therefore a value chain
based on value extraction at every key link required:
 Essential Just-In-Time services delivered through strategically placed
warehouses and channel partners
 Technical services like down-the-hole technologies
 Bulk Mixing and Delivery equipment based trucks to provide on the
spot service
 Growth path:
 Build technology capabilities to enhance technical services and
customer value
 Target gaps in global markets viz. East Asia, Australia, Africa
 Augment scale with capacity expansion close to Indian mining centres
20
Mining Chemicals
DFPCL’s Strengths
 One of the largest producers of TAN in the world and the only
producer of explosive grade low density prilled AN
 India’s largest TAN complex producing AN Melt, High-density
Ammonium Nitrate and Low-Density Ammonium Nitrate
 Strong brands and well-entrenched distribution system
 World-class quality with domestic scale
 Proximity advantage with high competence and ability to
provide Just-In-Time technical service knowledge
21
STRENGTHS – INDUSTRIAL CHEMICALS
22
Industrial Chemicals
DFPCL’s Business Model
 The primary focus of the Industrial Chemicals business is
currently solvents
 Opportunities arising in high value petrochemical downstream
products with similarity to solvents business
 Diversify its raw material base from ammonia towards
petrochemicals with an ultimate focus on high value
downstream products
23
Industrial Chemicals
DFPCL’s Strengths
 FDA-licensed products—Iso Propyl Alcohol and Nitric Acid with
advantages of scale
 Strong and direct relationship with over 600 Industrial
customers in India and globally
 Strong distribution network – over 50 channel partners across
India and exports to 30+ countries globally
 Sales Teams comprising chemical engineers committed to
technical support
 Strong entry barriers to business derived from scale and
services
 One of the few global players with Nitric Acid supply facility in
carbuoys and drums
24
PEOPLE AT THE HELM
25
People at the Helm
 Mr. Sailesh C. Mehta, Chairman and Managing Director - DFPCL
Under his leadership, the Company has emerged among the world’s top five
manufacturers of Technical Ammonium Nitrate, Asia’s leading manufacturer of
Nitric Acid and a domestic market leader in several fertilisers and crop nutrients,
and chemicals including Iso-Propyl Alcohol (IPA), Ammonium Nitro Phosphate
and Bentonite sulphur. DFPCL is ranked no. 3 among chemical companies in India
by Dun & Bradstreet.
DFPCL is now foraying into marketing fruits and vegetables globally through a
carefully managed vertically integrated business model that links the farm
productivity, product quality and consumer needs intimately.
Mr. Mehta took over as the Company’s Managing Director in 2002, was
appointed Vice Chairman in 2005 and elevated as Chairman in October 2012. His
involvement with the Company extends over two decades when he first started
work on its manufacturing operations following his management degree from
Texas, USA. He then oversaw the expansion of the Company from an ammonia
manufacturer to a multi-product market leader spanning fertilisers and
petrochemicals from natural gas.
Mr. Mehta is reckoned among the thought leaders in the Indian Agri-business
sector with his focus on improving nutrient management and farm economics in
India. He has for several years been among the top-office bearers of the
Fertilisers Association of India and has been keenly associated with the
International Fertiliser Association.
People at the Helm
 Mr. Partha Bhattacharyya, Executive Director – DFPCL
With over 35 years of experience across some of the most challenging
industrial sectors in the nation, Mr. Partha Bhattacharyya brings with him
extensive business knowledge, global financial insight and management
expertise, which will be leveraged to drive efficiency and growth across all the
key sectors at DFPCL.
Mr. Bhattacharyya joined Coal India Ltd. (CIL) as a Management Trainee in
1977 and ascended to become Chairman and Managing Director in 2006 and
continued till February 2011. During his tenure, CIL became Miniratna in
2007, Navratna in 2008 and Maharatna in 2011. He spearheaded the CIL IPO,
the largest IPO in Indian Capital Market so far. Prior to joining DFPCL, Mr.
Bhattacharyya led the Haldia Petrochemicals Ltd. team as Managing Director
and will now lead all operations and growth teams at DFPCL.
Having graduated with a Masters (Physics) from Jadavpur University, Mr.
Bhattacharyya has also completed a programme on Investment Appraisal and
Management from the Harvard University and Advanced Management
Program from Cambridge University. He is an FCMA and fellow of World
Academy of Productivity Sciences. He has been recognized by Forbes
Magazine as the ‘High Achiever of the Year 2010’ and has received numerous
awards from the Govt. of India. He is also the recipient of the CEPM-PMA
Honorary Fellowship Award.
27
People at the Helm
The day-to-day activities and decision making at DFPCL is managed by a competent
group of Internal Board members, who bring with them a multi-faceted storehouse of
knowledge and expertise. The Internal Board Members include:
 Mr. Somnath Patil, President and CFO
 Mr. Guy Goves, President – Agri-business & Farming Solutions
 Mr. Carl Anders Lindgren, President & Technical Advisor - TAN
 Mr. Alok Goel,, President – Chemicals
 Mr. Pandurang Landge, President – Projects
 Mr. Naresh Pinisetti, President – HR
COMPANY FINANCIALS
Income from Operations
Q2FY15
INR in Crores
Q2 FY 15 Year Ended 2014
Income From Operations
Q4 FY 14
Year Ended
2013
1020.54
3790.08
1069.59
2607.95
Profit Before Tax
12.70
336.39
122.59
200.58
Profit After Tax
10.02
243.88
91.44
146.91
30
Financial Snapshot
The strength of our business model is reflected in our year-on-year growth despite
growing global competition, the strength to withstand and rebound with resilience.
300
Net Profit
243.88
250
212.97
200
150
172.05
148.70
Rs.
Crores
Rs. Crores
EBIDTA- Operating
600
186.62
492.74
500
146.90
400.80
400
300
346.15
272.21
278.51
08-09
09-10
318.42
100
200
50
100
0
-
08-09 09-10 10-11 11-12 12-13 13-14
10-11
11-12
12-13
13-14
31
Financial Snapshot
Return on Net Worth
23.98%
25.00%
23.00%
21.00%
19.83%
19.86%
18.69%
19.00%
18.60%
17.00%
15.00%
13.00%
11.58%
11.00%
9.00%
7.00%
5.00%
08-09
09-10
10-11
11-12
12-13
13-14
32
Financial Snapshot
Earnings per Share
Figures in Rs.
27.65
30.00
24.15
25.00
20.00
16.86
19.51
21.16
16.65
15.00
10.00
5.00
0.00
08-09
09-10
10-11
11-12
12-13
13-14
33
Financial Snapshot
Long Term-Debt to Equity
0.75
0.65
Figures in Times
0.62
0.62
0.60
0.51
0.47
0.49
0.45
0.30
0.15
0.00
08-09
09-10
10-11
11-12
12-13
13-14
34
Thank You
Deepak Fertilisers and Petrochemicals Corp. Ltd.
Corp. Off: Opp. Golf Course, Shastri Nagar, Yerwada, Pune – 411006, Maharashtra, India
www.dfpcl.com
35